Highland
THE MARKET
The Sri Lankan dairy market is shaped by a growing shift towards nutritional sovereignty and a strong preference for local first consumption. Within this competitive landscape, Highland stands as the undisputed market leader, enjoying deep-rooted consumer trust that spans generations.
While international brands compete largely for shelf space, Highland competes on heritage, purity and national relevance. As Sri Lanka advances toward greater self-sufficiency in milk production, Highland remains the primary choice for millions, bridging the traditions of rural dairy farming with the evolving expectations of the modern, health conscious urban consumer.
ACHIEVEMENTS
Year 2025 stands as a historic year for Milco. During this period, the Highland brand recorded its highest sales revenue and profit margins since its inception, marking a defining chapter in the company’s growth journey. What makes this achievement particularly noteworthy is the operational efficiency that underpinned this performance, demonstrating the strength of a lean, disciplined and high-performance organisational culture.
This focus on efficiency and productivity has firmly positioned Highland as a powerhouse in Sri Lanka’s dairy industry – one that is capable of delivering scale without compromising quality or cost discipline. Yet, beyond financial milestones, the brand’s most enduring achievement liesin its social impact.
Highland continues to provide a stable and sustainable source of income for thousands of local dairy farmers across the island, reinforcing livelihoods and strengthening rural economies.In doing so, the value generated by the brand remains embedded within Sri Lanka’s agricultural communities, supporting national self-sufficiency while creating shared prosperity.
HISTORY
The story of Milco is inseparable from Sri Lanka’s long journey towards dairy independence. Its origins date back to the mid-1950s with the establishment of the National Milk Board, a visionary initiative aimed at improving nutrition, and making milk more affordable and accessible to the population.
In 1986, this mandate evolved with the formation of Milco as a state owned enterprise (SOE), combining public purpose with a strong commercial foundation.
Over the decades, Milco has transformed from a basic milk collection agency into a modern, industrial scale dairy organisation. The iconic Highland brand emerged from this evolution, conceived to reflect the purity, freshness and natural richness of Sri Lanka’s central highlands.
Through changing political landscapes, economic cycles and industry disruptions, Milco has remained a resilient pillar under the Ministry of Agriculture and Livestock, adapting while staying true to its core mission.
Today, Milco operates four major production facilities in Colombo, Ambewela, Digana and Polonnaruwa with another coming up in Badalgama, forming the backbone of the country’s formal dairy industry.
These factories serve as the critical link between the lush pastures of the hill country and breakfast tables of millions of Sri Lankans. This enduring legacy is built on the dedication of local dairy farmers and a shared national vision – one that is rooted in self-reliance, food security and sustainable agricultural development.
THE PRODUCT
Highland Yoghurt is more than a simple snack; it is a culinary icon deeply embedded in Sri Lankan households. Renowned for its thick, creamy texture and clean, natural finish, it is produced using 100 percent fresh Sri Lankan cow’s milk, collected daily from local dairy farmers.
Unlike many mass market alternatives, Highland Yoghurt avoids excessive stabilisers and artificial fillers, relying instead on a carefully perfected fermentation process that preserves the milk’s natural proteins, calcium and nutritional integrity.
The product range – including the much loved vanilla flavoured Set Yoghurt, and the Non-Sugar and Non-Fat Yoghurt variant specially formulated for health conscious consumers – has set a benchmark for quality and consistency. Each variant reflects the brand’s commitment to purity, taste and nutrition.
Highland Yoghurt’s signature flavour profile – a delicate balance between gentle sweetness and refreshing tang – has earned it widespread loyalty, making it the standard against which other local yoghurts are measured. As a result, the name Highland continues to be synonymous with freshness, trust and uncompromising quality.
RECENT DEVELOPMENTS
Milco is currently undergoing a notable technological renaissance, marking a new phase in its evolution as a modern dairy enterprise. One of the most prominent developments in this transformation is the revitalisation of the Badalgama Dairy Factory project. With direct intervention and renewed support from the government, the facility is being repositioned as a state-of-the-art hub for dairy processing and innovation.
Recent administrative and legal breakthroughs have cleared long-standing bottlenecks, paving the way for the completion of the factory’s remaining infrastructure. Once operational, Badalgama is expected to substantially increase Milco’s production capacity, particularly in key growth categories such as yoghurt and liquid milk, and the value added product range, strengthening the company’s ability to meet rising national demand.
This physical expansion is being complemented by a parallel push towards digitalisation across Milco’s milk collection network. By introducing real-time quality monitoring, data driven traceability and transparent digital payment systems for farmers, Milco is modernising its supply chain from farm to factory.
These initiatives not only improve efficiency and accountability but also reinforce trust with dairy farmers, ensuring consistent quality and fair compensation. Collectively, these advancements position Milco to meet its ambitious performance and productivity targets leading up to 2026 and beyond.
PROMOTION
The promotion of the Highland brand is firmly anchored in the concept of national pride. Rather than chasing short-lived trends or superficial marketing narratives, Highland’s communication strategy is built around its identity as a true brand of the people.
Its campaigns consistently celebrate the journey of milk – from the hands of local dairy farmers to the homes of Sri Lankan consumers – reinforcing a message of authenticity, trust and shared responsibility.
Central to this narrative is the brand’s guiding ethos – ‘protecting what is ours, for the nation’ – which reflects Highland’s commitment to safeguarding local livelihoods, food security and nutritional wellbeing. By highlighting its deep-rooted connection to rural farming communities, Highland creates an emotional bond with consumers, positioning its products not merely as dairy essentials but symbols of collective progress and self-reliance.
Highland actively leverages its heritage to promote a lifestyle centred on health, quality and patriotism. Whether through grassroots community engagements, educational initiatives or high profile national sponsorships, the brand consistently reinforces the idea that choosing Highland is more than a purchase decision – it is an investment in the country’s future.
By supporting Highland, consumers directly contribute to the health of the nation and the long-term prosperity of Sri Lanka’s dairy farming communities.
BRAND VALUES
At the core of the Highland brand are three unwavering pillars: purity, integrity and empowerment. These values guide every aspect of the brand’s operations and define its role within Sri Lanka’s dairy ecosystem.
Purity reflects Highland’s uncompromising commitment to delivering 100 percent fresh milk products without sacrificing nutritional value. From sourcing raw milk to processing and distribution, strict quality controls ensure that consumers receive products that are wholesome, safe and true to nature, free from unnecessary additives or shortcuts.
Integrity underpins Highland’s approach to food safety, ethical practices and corporate governance. Even amid challenging economic conditions, the brand maintains the highest operational and compliance standards, reinforcing consumer confidence and ensuring transparency across the value chain. This steadfast commitment has enabled Highland to build enduring trust with regulators, partners and households alike.
Empowerment defines Highland’s role as a socially responsible enterprise. By prioritising the welfare of local dairy farmers, the brand actively supports rural livelihoods, fair pricing and long-term sustainability. Thousands of farming families benefit directly from Highland’s operations, strengthening local economies and preserving agricultural traditions.
Highland firmly believes that a brand is only as strong as the community it supports. By staying true to these core values, the brand ensures that every purchase contributes to a sustainable ecosystem where product quality, social responsibility and national progress exist in harmony.
